Homeplus secured 200 billion won in emergency operating funds on the 15th, announced at a rally held in front of the Blue House in Jongno-gu, Seoul. Meritz Financial will provide the 200 billion won loan, fully guaranteed by MBK Partners and Chairman Kim Byung-joo. The funding addresses immediate liquidity needs as the retailer faces 1.1 trillion won in public claims as of the end of May, including 24 billion won in monthly payroll obligations. Democratic Party lawmaker Min Byung-deok, who disclosed the funding arrangement at the rally, stated that the 200 billion won represents the minimum necessary lifeline rather than a guarantee of survival. Homeplus operates under a court-supervised rehabilitation procedure with a final deadline of September 4, following suspension of operations at 67 large-scale stores from the 13th due to operating fund depletion.
Meritz Financial Provides 200 Billion Won Emergency Loan
Meritz Financial will extend a 200 billion won loan to Homeplus, with MBK Partners and Chairman Kim Byung-joo providing full guarantees for the amount. The funding structure was disclosed by Democratic Party lawmaker Min Byung-deok at the Homeplus Workers and Merchants General Rally on the 15th. Min stated that the 200 billion won does not guarantee the company's survival, describing it as the minimum necessary lifeline for continued operations.
Public Claims Total 1.1 Trillion Won as of End of May
Homeplus faces 1.1 trillion won in public claims as of the end of May. Public claims receive priority repayment over general creditors in rehabilitation procedures. Trade payables, including unpaid supplier payments, account for 794 billion won of the total. Taxes and public charges total 82 billion won, unpaid wages 62.5 billion won, and debtor-in-possession (DIP) financing claims 161.4 billion won. Public claims stood at 332.8 billion won at the start of the rehabilitation procedure, increasing by 767.1 billion won over one year and two months.
Homeplus's monthly payroll alone reaches approximately 24 billion won. The company received 120.6 billion won in proceeds from the sale of Homeplus Express on the 22nd of last month. NS Shopping, the buyer, placed a lien on 45 billion won as security for unpaid local taxes, leaving 75.6 billion won available for use. Approximately 65 billion won of this amount went toward paying overdue wages for April and May. The 120.6 billion won inflow resulted in only a 20 billion won reduction in public claims.
Homeplus Suspends Operations at 67 Stores from the 13th
Homeplus suspended operations at all 67 large-scale stores nationwide from the 13th due to operating fund depletion. The sudden suspension caught suppliers off guard, with concerns over recovery of outstanding payments persisting. Some stores experienced supply shortages, with fresh food sections left empty prior to the suspension.
Homeplus maintains that trade payables can be repaid through resumed operations once inventory fills shelves. The company states that 40 owned stores have an appraised value exceeding 2 trillion won, with approximately 1.4 trillion won remaining after deducting liabilities. Homeplus proposes that a new acquirer could take over debts exceeding 1.3 trillion won owed to Meritz, enabling a merger and acquisition without substantial additional capital.
Meritz Board Meeting Scheduled for the 16th
Meritz Financial will convene board meetings at Meritz Fire & Marine Insurance, Meritz Securities, and Meritz Capital on the 16th to discuss the loan proposal. Some outside directors expressed negative opinions when a 1 billion won support package was discussed last month. Board approval and fund execution must occur before the process can advance to the next stage.
Immediate Appeal Deadline Set for the 20th
Homeplus must file an immediate appeal by the 20th following board approval. If the court accepts the appeal, the rehabilitation procedure will continue until the final deadline of September 4. To meet the submission deadline, Homeplus must finalize a revised rehabilitation plan by early August. The plan requires creditor consent. If approved, the court will monitor implementation before concluding the procedure. Failure to execute the plan properly could result in bankruptcy proceedings.
If the rehabilitation procedure extension fails, Homeplus will immediately enter bankruptcy proceedings. Reapplication for rehabilitation remains possible after termination, but courts rarely accept previously rejected rehabilitation cases. If Homeplus as debtor, majority shareholder MBK, or creditors file for bankruptcy, the court will distribute remaining assets to creditors and liquidate the Homeplus legal entity under court supervision. This process alone takes over one year. During this period, small and medium enterprises and small business owners tied to Homeplus face inevitable chain bankruptcies.
FAQ
Q1: What emergency funding did Homeplus secure on the 15th?
Homeplus secured 200 billion won in emergency operating funds from Meritz Financial on the 15th, with MBK Partners and Chairman Kim Byung-joo providing full guarantees. Democratic Party lawmaker Min Byung-deok announced the arrangement at a rally in Seoul, describing it as the minimum necessary lifeline rather than a guarantee of survival.
Q2: How much does Homeplus owe in public claims as of the end of May?
Homeplus faces 1.1 trillion won in public claims as of the end of May. Trade payables account for 794 billion won, taxes and public charges 82 billion won, unpaid wages 62.5 billion won, and DIP financing claims 161.4 billion won. Public claims increased by 767.1 billion won over one year and two months from the initial 332.8 billion won at the start of rehabilitation proceedings.
Q3: When must Homeplus file an immediate appeal to continue rehabilitation proceedings?
Homeplus must file an immediate appeal by the 20th. If the court accepts the appeal, the rehabilitation procedure will continue until the final deadline of September 4. To meet the submission deadline, Homeplus must finalize a revised rehabilitation plan by early August.
